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Dollar Heads for Biggest Weekly
Drop Against Euro in a Month
Agnes Lovasz and Kosuke Goto
Bloomberg
Friday, March 28, 2008
The dollar headed for its biggest weekly decline in a month against
the euro as traders raised bets the Federal Reserve will cut interest
rates to avert a recession.
The currency was also poised to drop versus the British pound
and the Swiss Franc before a U.S. government report today that
will probably show growth in consumer spending slowed. The yen
fell against the Australian and New Zealand dollars as gains in
Asian stocks prompted traders to increase holdings of higher-
yielding assets funded with loans from Japan.
``There are further declines ahead for the dollar,'' said Antje
Praefcke, a Frankfurt-based currency strategist at Commerzbank
AG, Germany's second-largest lender. ``The U.S. is probably facing
a recession and the Fed will cut rates further. There are ongoing
problems with the financial sector. All of this is not good news
for the dollar.''
(Article continues below)
The dollar traded at $1.5812 per euro at 7:15 a.m. in New York,
from $1.5779 yesterday and $1.5431 a week ago. The U.S. currency
rose to 99.97 yen, from 99.65 yesterday and 99.58 at the end of
last week. Japan's currency weakened to 158.10 per euro, from
157.21 yesterday and 153.55 on March 21.
The dollar, which dropped 2.4 percent this week, will trade in
the $1.5750 to $1.58 range today before falling to a record $1.60
within the next two weeks, Praefcke predicted.
New Zealand's dollar advanced after a statistics bureau report
showed the nation's economic growth in the fourth quarter accelerated
at the fastest annual pace in three years. The currency rose to
as high as 80.68 U.S. cents, before trading at 80.54 cents, from
80.35 cents. It also gained 0.6 percent to 80.56 yen. The Australian
dollar strengthened 0.6 percent to 92.40 U.S. cents and 0.9 percent
to 92.41 yen.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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